What is the Savings & Investment Plan – Options?
The Savings & Investment Plan - Options is the former The Children’s Mutual Growing Up Bond. It was transferred to Forester Life in January 2017 by way of change of management.
What does this mean for your Savings & Investment Plan – Options?
Your Savings & Investment Plan - Options is now provided by Forester Life. You are now able to do business with us in a way that suits you; online, over the telephone, by post or with a Forester Life Financial Adviser.
As your Plan is directly with Forester Life they are a member of Foresters Financial.
What is a unit-linked life plan?
A unit-linked life plan provides the option to invest in a number of funds by purchasing units in those funds. The unit price changes directly in line with the investment performance of the fund(s). The fund(s) that the new Plan is invested have the same investment objectives and the same investment manager(s) as before the transfer.
How does unit pricing work?
The price of each unit depends on the value of the assets of the unit-linked fund, less any allowances for management charges and are valued at regular intervals, usually at the end of a business day. The unit price determines the number of units you receive when you invest into the fund, and the amount received when the investment matures.
Following the transfer we have launched a number of new unit-linked funds all initially priced at £1. As the previous price for each fund varied there will be a difference in the number of units you now hold compared to the shares held before the transfer. The fund value of your Savings & Investment Plan - Options on the date of the change of management has not changed, only the unit price resulting in a different number of units. By way of example this is illustrated as follows using example figures rather than actual prices:
|Price of each share: £2
||Price of each share: £1
|Number of shares: 1,500
||Number of shares: 3,000
|Fund value: £3,000
||Fund value: £3,000
Are there changes to the charges?
Yes, many of the specialist funds with The Children’s Mutual may have had an initial charge on contributions and fund switches. Foresters Financial have removed these and no further initial charges will apply in the future.
Is there any change to how my Savings & Investment Plan - Options is invested?
Your savings will be invested in the same fund(s) as before the change of management so there won’t be any changes to the investment aim(s), objective(s) or fund managers.
What funds can I invest in?
In addition to your current fund choice you have the option to switch part or whole of your investment and/or future contributions into the Foresters Stakeholder (Schroders) Managed 2 Fund.
How do I contribute?
Contributions can be made by debit card, direct credit, standing order or cheque, or you can set up monthly contributions by direct debit. The Savings & Investment Plan - Options is a flexible and straightforward way to invest and easy to change if circumstances change.
I had a direct debit or standing order set up with The Children’s Mutual, do I need to amend anything?
No, there is no need to make any changes. Your bank statement will show “Forester Life”, rather than “The Children’s Mutual” as the payment reference.
How does the automatic increase work?
Each year we will automatically increase the amounts received from regular contributions to keep pace with inflation (subject to a minimum of 2.5%). You will receive written notification before the increase occurs and you have the option to opt out of this at any time.
How do I activate my online account?
To activate your online account please click below. All you need is your activation code, your new Plan number (which you will receive separately in the post) and the Planholder’s date of birth (this will be the person who originally took out the Growing Up Bond).
Activate my account
I have more than one Plan, do I need to activate all of their online accounts?
No, if you have more than one Plan transferred from The Children’s Mutual all you need to do is complete the activation process for one of your Plans and you will then be able to see all your Plans in one place.
I already have a My Plans account, do I need to activate my Plans transferred from the Children’s Mutual?
No, we will do this for you so that you can see all your Plans in one place.
I have not received my Plan Documents, Closing Statement and Activation code?
You will receive one pack which contains your closing statement and your new Plan Documents, enclosed with a form to declare your residency. You will receive another pack which contains information about how to activate your online account management and your activation code.
If you have not received either of this information we may not have the correct postal address for you, so that we can send you these documents please contact Customer Services to confirm and update any details on 0333 600 0333 lines are open Monday to Friday 8:30am to 5pm.
I have not received any information about the transfer of Plans from the Children’s Mutual to Forester Life, what do I need to do?
If you have not received any communication from us please contact Customer Services on 0333 600 0333. Lines are open Monday to Friday 8:30am to 5:00pm.
I have received an error message when trying to activate my online account, what do I need to do?
If you have tried to activate your online account and you are receiving an error message please contact Customer Services to ensure your child’s details are correct on 0333 600 0333. Lines are open Monday to Friday 8:30am to 5:00pm.
I have set up my online account however my Plan(s) aren’t displaying, what do I do?
If you can’t see any Plan information, this is because we are collecting your information to set up your online account. This should take no longer than 24 hours. If your Plan(s) are still not displaying after 24 hours please contact us on 0333 600 0333.
What is a closing statement?
A closing statement is a document issued by The Children’s Mutual confirming that the change of management of the Growing Up Bond to Forester Life is complete.
Why do I need to complete a Tax Residency Declaration Form?
To comply with UK law, we are required to confirm the tax residency of all customers who hold a Savings & Investment Plan - Options.
Is my Plan designated?
Some Growing Up Bond policyholders chose to “designate” their beneficial interest in the account to someone else. As part of the transfer to Forester Life the Growing Up Bond has been replaced by a newly issued Forester Life Plan in the name of the Growing Up Bond policyholder. The new Plan is not held in trust or subject to this designation.
Should you want to hold your new Savings & Investment Plan - Options in trust, you will need to make arrangements for this yourself by seeking professional legal advice. Forester Life cannot provide such advice.
Will my Savings & Investment Plan - Options be lifestyled?
If you selected the lifestyling option under your Growing Up Bond (under which the assets held in your account are gradually switched to lower risk assets over a 5 year time period prior to the selected Target Date) we will provide a very similar option under your new Plan.
Confirmation of the Target Date is shown in the Plan Document. We will write to you with further details prior to the commencement of lifestyling.
If lifestyling under your Growing Up Bond had already commenced prior to 1 January 2017 then lifestyling will continue in a very similar manner under your new Plan.
Will the benefits of my Savings & Investment Plan - Options be taxed?
Unlike the Growing up Bond, Forester Life is liable to tax on the income and growth of the fund(s) linked to the Savings & Investment Plan - Options. Although non-taxpayers are unable to reclaim this tax, the majority of investors will have no further tax liability. However, for additional rate, higher rate and some basic rate taxpayers, there may be further tax to pay, in the event of a Chargeable Gain.
Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future.